Correlation Between Jahen Household and Zijin Mining
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By analyzing existing cross correlation between Jahen Household Products and Zijin Mining Group, you can compare the effects of market volatilities on Jahen Household and Zijin Mining and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jahen Household with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Zijin Mining.
Diversification Opportunities for Jahen Household and Zijin Mining
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jahen and Zijin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining Group and Jahen Household is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jahen Household Products are associated (or correlated) with Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of Jahen Household i.e., Jahen Household and Zijin Mining go up and down completely randomly.
Pair Corralation between Jahen Household and Zijin Mining
Assuming the 90 days trading horizon Jahen Household Products is expected to under-perform the Zijin Mining. In addition to that, Jahen Household is 1.75 times more volatile than Zijin Mining Group. It trades about -0.02 of its total potential returns per unit of risk. Zijin Mining Group is currently generating about 0.04 per unit of volatility. If you would invest 1,320 in Zijin Mining Group on August 29, 2024 and sell it today you would earn a total of 248.00 from holding Zijin Mining Group or generate 18.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahen Household Products vs. Zijin Mining Group
Performance |
| Timeline |
| Jahen Household Products |
| Zijin Mining Group |
Jahen Household and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Zijin Mining
The main advantage of trading using opposite Jahen Household and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, Zijin Mining can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zijin Mining will offset losses from the drop in Zijin Mining's long position.| Jahen Household vs. Shandong Gold Mining | Jahen Household vs. Rongsheng Petrochemical Co | Jahen Household vs. Inner Mongolia BaoTou | Jahen Household vs. Jiangxi Ganfeng Lithium |
| Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Inner Mongolia BaoTou | Zijin Mining vs. Jiangxi Ganfeng Lithium |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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